The administrators of Hills are urgently assessing possible restructure or recapitalisation options for the failed business.
Hills was placed in administration late on Friday last week by creditor AMAL Security Services, following the company, which is now focused on IT solutions for the healthcare sector, losing a court case on appeal.
The company’s shares were placed in a trading halt on May 25, a week after the $5.48m judgment was handed down, and last changed hands for 2.3c each, valuing the firm at $12.3m.
The once mighty manufacturer of the Hills Hoist – with that brand now owned and manufactured by Ames Australasia – Hills has struggled to transform over the past decade from an industrial and home and hardware products firm to a technology developer and manufacturer.
The $5.48m payout put Hills in a difficult financials position, with the company having a cash balance of $2.8m at the end of the March quarter, although it did complete an entitlement offer on April 20, raising $6.4m.
Administrators Sule Arnautovic and John Vouris of Hall Chadwick Chartered Accountants said on Monday they would now look at options for the firm.
“The administrators are undertaking a preliminary review and assessment of all of the
companies’ operations with a view to determining the extent to which the companies
can be restructured/recapitalised by way of a deed of company arrangement, creditors’ trust and/or implementing a going concern sale of business of the companies,’’ they told the ASX in a statement.
“At this time, the business of the companies is continuing in the ordinary course.
“On present indications the administration period for the companies will last approximately six weeks. We will keep you abreast of any developments in respect of this estimated timetable in due course.’’
The first creditors’ meeting will be held no later than Thursday June 15.
Hills, founded in suburban Adelaide by Lance Hill in 1945, began life as the manufacturer of the Hills Hoist and grew into a powerhouse with revenues of more than $1bn in the late 2000s.
The company attempted a number of restructures from that time in a bid to transform from a manufacturer of home and hardware and steel products into a technology supplier, however largely failed in that endeavour.
The court case which brought the company undone was related to the provision of patient entertainment systems to the Western Sydney Local Health District.
After a falling-out between the two supplier companies over contractual matters, the plaintiff, Stellar Vision Operations, sued Hills.
The matter was originally dismissed early in 2022 however Stellar appealed that decision and won a $5.48m payout, with that verdict handed down on May 18.